icon fb blueicon linkedin blueicon call blueicon youtube blue

The Future of Vietnam-US Trade: A Bright Outlook

David Lang
Founder & CEO, Viettonkin; FDI and Fortune 500 Consultant
Trường (David) Lăng, Founder & CEO of Viettonkin, is a distinguished FDI advisor and Fortune 500 consultant, spearheading thousands of successful investment projects to connect ASEAN economies with the world.
Trường (David) Lăng, Founder & CEO of Viettonkin, is a distinguished FDI advisor and Fortune 500 consultant, spearheading thousands of successful investment projects to connect ASEAN economies with the world.
The Future of Vietnam-US Trade: A Bright Outlook

Vietnam and the United States have an interesting history of trade-economic cooperation. The two countries have a mutually beneficial trade relationship, and they are committed to working together to promote economic growth and prosperity in the region. The future of trade-economic cooperation between Vietnam and the United States is bright, and it is likely to continue to grow in the coming years.

The evolution of Vietnam-US relations

The United States is a major investor in FDI in Vietnam. Over the past 30 years, the situation of FDI from the United States in Vietnam has undergone significant changes, which can be classified into 4 stages: 

Stage 1: From 1994 to 1999: The beginning of Vietnam - US trade relations

In February 1994, President Bill Clinton announced the complete lifting of the embargo against Vietnam. From then on, the foundation for trade between the two countries began to be established and prospered. On July 11, 1995, Vietnam and the United States normalized relations. Prime Minister Vo Van Kiet stressed that this decision was in line with the trend of international developments and would contribute positively to the cause of peace, stability, and development in Southeast Asia, as well as in the world. Vietnam and the United States opened embassies in each other's countries in August 1995 and exchanged ambassadors in May 1997. As of 1995, the total amount of US FDI in Vietnam reached $759.92 million.

Stage 2: From 2000 to 2006: The turning point in Vietnam - US bilateral relations

In 2001, the Vietnam–United States Bilateral Trade Agreement came into effect, marking a strong recovery and resurgence of trade between the two countries. The agreement came into effect in December 2001. All goods exported from Vietnam to the United States are granted most-favored-nation (MFN) tariff treatment, also known as unconditional normal trade relations (NTR). Thanks to the positive impacts that this agreement brought, US FDI in Vietnam from 2001 to 2006 changed dramatically, reaching $1.826.18 billion.

Stage 3: From 2007 to 2014: Strengthening Vietnam - US economic cooperation

The next period, from 2007 to 2010, FDI grew at an astonishing rate, reaching $9.625.6 billion, despite the global financial crisis of 2008 that cast a dark cloud over the world economy. The prominent event that opened this period was Vietnam's accession to the WTO in early 2007, marking a turning point in the flow of investment from the United States with investment capital concentrated in the areas of production and application of modern science and technology.

Notably, in July 2013, during President Truong Tan Sang's visit to the US at the invitation of his counterpart Barack Obama, the two sides established the Vietnam-US comprehensive partnership, which shaped a framework for bilateral relations for the new period as well as the development direction of the relationship in the coming years.

Stage 4: From 2015 until now: Leveraging bilateral cooperations between Vietnam - US governments

Vietnam-US relations have entered a new phase of development in recent years. This is evidenced by the fact that high-level visits between the two countries have become more frequent. Notable were the visits by Vietnamese Party General Secretary Nguyen Phu Trong in 2015, US President Barack Obama in 2016, Vietnamese Prime Minister Nguyen Xuan Phuc in 2017. Later in 2017, President Trump visited Vietnam and attended the Asia-Pacific Economic Cooperation (APEC) forum in Đà Nẵng. Recently, US Vice President Kamala Harris visited Vietnam in 2021, and Vietnamese PM Pham Minh Chinh attended U.S.-ASEAN Special Summit in May 2022. These visits have helped deepen the Vietnam-US comprehensive partnership, promote the development of the relationship on the basis of mutual benefits, equality and respect for each other's independence, sovereignty, and political institutions.

President Obama and President Tran Dai Quang in Hanoi on 23 May, 2016

The characteristics of US FDI in Vietnam

Foreign direct investment (FDI) from the United States has played an important role in the economic development of Vietnam. In recent years, US FDI has become increasingly important, with the United States becoming the second-largest source of FDI in Vietnam. There are a number of characteristics that distinguish US FDI in Vietnam from FDI from other countries.

 FDI has played a crucial role in Vietnam's economic development over the past few decades.

First, US FDI has a high research and development (R&D) intensity. This means that US investors are more likely to invest in projects that involve the development of new technologies. This is in contrast to FDI from other countries, which is often focused on more traditional industries. Foreign direct investment (FDI) from the United States is primarily for the production of sophisticated products that are based on high-tech, exclusive, and capital-intensive technologies that serve the host country's market. 

Second, US investors have different goals and motivations than investors from other countries. US investors are more likely to be interested in the long-term potential of Vietnam, rather than simply looking to exploit short-term opportunities. They are also more likely to be interested in transferring technology and know-how to Vietnam. A study by the US-ASEAN Business Council found that 70% of US investors in Vietnam are interested in the long-term potential of the country, compared to only 40% of investors from other countries. Another study by the Vietnam Chamber of Commerce and Industry found that US investors are more likely to invest in projects that involve the transfer of technology and know-how to Vietnam, compared to investors from other countries. 

Third, the level of technology absorption and the willingness to protect intellectual property rights in Vietnam are important factors that attract US FDI. In terms of the level of willingness to protect IP (PERC), Vietnam is only at an average level. Vietnam's legal system for establishing and enforcing intellectual property rights is still complex and unstable; there are still cases of copyright infringement, counterfeit and pirated goods. However, Vietnam has made significant progress in improving its business environment in recent years, and this has helped to attract more US FDI. These improvements are likely to continue in the future, as Vietnam seeks to attract even more foreign investment.

The emerging trends of US FDI in Vietnam

The year 2023 is an important milestone in Vietnam-US relations as it marks the 10th anniversary of the establishment of their comprehensive partnership (2013-2023). Twenty-eight years after the diplomatic ties were set up, and 10 years since the establishment of the comprehensive partnership, the Vietnam - US relationship has enjoyed all-round and substantive development, contributing to peace, security, cooperation and development in the region and the world.

Vietnam - U.S. Trade Forum 2022 - AmCham Vietnam 

Over the last decade, Vietnam has emerged as a major manufacturing center and has risen to become one of the top 10 trading partners for the United States. Based on U.S. Census Bureau data, bilateral trade in goods was nearly $139 billion in 2022, up 22% from 2021. The United States’ bilateral trade deficit in goods with Vietnam in 2022 ($116 billion) was the United States’ third largest. Vietnam is a major source for consumer electronics, furniture, mechanical appliances, apparel, and footwear imports. Notably, it is the second-largest source of U.S. clothing imports, after China. Top U.S. goods exports to Vietnam are cotton, civilian aircrafts and parts, semiconductors, soybeans, and various agricultural goods. The United States maintains a surplus in bilateral services trade, which in 2022 was around $1.6 billion. 

Analysts predict that the United States will soon become the leading investor in Vietnam. In particular, at the Vietnam-US Summit, Under Secretary of Commerce for International Trade Marisa Lago stated that health care, digital trade, energy, and climate change will be the three priority areas for US businesses to cooperate with Vietnam in 2023. This is also in line with Vietnam's new FDI attraction strategy, which is to place a greater priority on attracting high-tech projects, digital transformation, and especially clean energy investment projects.

To wrap up ...

Vietnam and the US are continuing to strengthen the Vietnam-US Comprehensive Partnership. There is no doubt that Vietnam-US relations are at the best stage since the end of the Vietnam War. Vietnam is the only Southeast Asian country in the top 10 of U.S. trading partners, and American manufacturers increasingly consider Vietnam as an alternative destination to China. 

Thus, it is an ideal time for the US investors to seize the opportunities! Reach out to us if you need support with setting up a company in Vietnam. With our specialized knowledge and experience in Vietnam and global markets, as well as legal procedures across diverse majors and sectors, we will walk you through the challenges. Don't miss your chance to be part of this transformative journey. Take action now and explore the possibilities of doing business and investing in Vietnam.

Found This Insight Valuable?
Need expert guidance on ASEAN market entry?
Schedule a Consultation
About the Author
David Lang
Founder & CEO, Viettonkin; FDI and Fortune 500 Consultant
Trường (David) Lăng, as Founder and CEO of Viettonkin, dedicates his extensive expertise to fostering robust trade and investment bridges between Southeast Asia and global partners. With over 17 years of experience, he has successfully guided over 3,000 FDI projects and advised Fortune Global 500 corporations on complex market entry and expansion strategies. His impactful work includes providing technical assistance to governments, developing innovative initiatives like Viettonkin's 'FDI Desks,' and maintaining strategic relationships with central authorities and NGOs. David's thought leadership in economic development and policy advocacy empowers businesses worldwide to confidently navigate and thrive in emerging markets.

Related Insights

How To Set Up a Joint Venture in Singapore?

This article will focus on setting up a Joint Venture in Singapore, including types of a Joint Venture, the advantages and disadvantages, and the procedure to set it up. Let’s keep reading the article! Overview of a Joint Venture A joint venture is a business entity created by two or more parties and generally characterized […]
Read Article →

Strategies for Startup in Indonesia to Attract Investors

Exponential growth has been witnessed over the last few years in the number of startups, largely propped up by rapid advances in technology, newer ways of doing business, and the growing demand for digitization. Unlike traditional enterprises, startups are created to scale up fast with scalable solutions that address critical market needs, many a time […]
Read Article →

Why Vietnam Fintech market is a dreamland for foreign investors

Vietnam is without exception hard hit by the ongoing COVID-19 epidemic; however, the country is the fastest-growing nation in ASEAN. Despite market uncertainty, Vietnam is strongly recovering post-COVID-19 and relentlessly developing the digital economy (PwC, 2021). In this way, global capital continues to pour into the country, in which investment appetite in Fintech is still […]
Read Article →

Infrastructure in Vietnam: Your Strategic Edge for ASEAN Market Expansion in 2025

Ever wondered how to unlock true expansion across Southeast Asia? Here’s the reality: without world‑class infrastructure - roads, ports, power, and digital networks - your growth plan stalls. Vietnam’s infrastructure build‑out is outpacing many peers—massive Capital Expenditure under the National Master Plan 2030 is driving new highways, ports, power grids, and 5G rollout, though last‑mile […]
Read Article →
Entering Vietnam's Banking Market: Get Your Essential 2025 eBook 

Vietnam's dynamic banking sector is a top destination for foreign investment. To succeed, you need a deep understanding of the local landscape, from new regulations to market entry models.

Our eBook, "ESTABLISHING FOREIGN BANK PRESENCE IN VIETNAM" gives you the crucial insights you need, including:

  • 2024–2025 Sector Overview: Key economic and banking industry analysis.
  • Step-by-Step Entry Guidance: A deep dive into all primary market entry modes.
  • The Latest Legal Updates: Critical regulatory changes taking effect in 2025.
  • Smart Investment Strategies: Insights on M&A, strategic equity, and Fintech.

Download now for the expert knowledge to invest with confidence.

Entering Vietnam's Banking Market: Get Your Essential 2025 eBook 

Vietnam's dynamic banking sector is a top destination for foreign investment. To succeed, you need a deep understanding of the local landscape, from new regulations to market entry models.

Our eBook, "ESTABLISHING FOREIGN BANK PRESENCE IN VIETNAM" gives you the crucial insights you need, including:

  • 2024–2025 Sector Overview: Key economic and banking industry analysis.
  • Step-by-Step Entry Guidance: A deep dive into all primary market entry modes.
  • The Latest Legal Updates: Critical regulatory changes taking effect in 2025.
  • Smart Investment Strategies: Insights on M&A, strategic equity, and Fintech.

Download now for the expert knowledge to invest with confidence.

Download E-Book

About Us

Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.
Contact
Email: 
info@viettonkin.com.vn
Phone Number: 
+84 977093166
Support
FAQ
Subscribe to our insights to look at the critical issue that your business is facing and stay ahead of the competition in a rapidly changing world.
Subscription Form
img linkedin
Viettonkin Consulting Logo © 2025 - Viettonkin JSC

Anything we can help with?

arrow-up